Suppose a bank has $120 millions which has been invested to a risky asset with normally distributed return of annual mean =10% and annual standard deviation = 5%.Calculate the probabilities given below for the end of the year.
1. What is the probability that the loss will be less than equal to $10 mil?
2. What is the probability that loss is in between $15 mil and $20 mil?
3. What is the probability that the value of portfolio is greater than $140 mil?
4. What is the probability that the value of portfolio is less than equal to $120 mil?
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